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China has been helping the other countries in SEA by maintaining their
exchange rate in the face of other competing countries' devaluations.
This has made Chinese exports more expensive. The fear is that China
will devalue defensively to protect its own export businesses. This will
of course further hurt countries like Thailand, Singapore, etc.
DanG
Alan Myers wrote:
>
> One thing that I don't understand is why such a move by China (devaluation)
> seems to be so feared. How much worse can it get for S.E. Asia?
>
> ~Alan
>
> -----Original Message-----
> From: TheGonch <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, January 21, 1999 8:23 AM
> Subject: Re: Devaluation question
>
> >The HK$ is pegged to the US$. The reminbi (sp?) is not convertible but
> >is effectively maintained by the Chinese govt, and there has been talk
> >of the Chinese 'floating' its currency by refusing to support current
> >levels, which is most similar to the Brasilian situation, where they
> >were not strictly pegged, but attempted to manage the deterioration of
> >the exchange rate over time.
> >
> >DanG
> >
> >Andrew wrote:
> >>
> >> At 05:12 PM 1/21/99 , you wrote:
> >>
> >> You mean HK dollar.
> >>
> >> >China gets the focus now as the biggest economy pegging its rate.
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